Reference no: EM131215664
Topper Toys has developed a new toy called the Brainbuster. The company has a standard cost system to help control costs and has established the following standards for the Brainbuster toy:
Direct materials: 7 diodes per toy at $0.31 per diode
Direct labor: 1.2 hours per toy at $7.30 per hour
During August, the company produced 5,000 Brainbuster toys. Production data on the toy for August follow:
Direct materials: 76,000 diodes were purchased at a cost of $0.29 per diode. 32,250 of these diodes were still in inventory at the end of the month.
Direct labor: 6,600 direct labor-hours were worked at a cost of $50,820.
Required:
1. Compute the following variances for August (Do not round your per unit rates, round other intermediate calculations and your final answer to nearest whole dollar. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).):
a. Direct materials price and quantity variances.
b. Direct labor rate and efficiency variances.
|
Which internal control procedure needs strengthening
: In the following? situation, which internal control procedure needs strengthening? At Syria? Services, the accounting clerk fills out unnumbered purchase order forms for purchases of supplies. An operations engineer completes the form with a detailed..
|
|
What was the amount of net income for the year
: During the year, the company earned revenue of $5,900, all of which was received in cash, and incurred expenses of $3,450, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $1,900 to owners. Assume no othe..
|
|
Calculate the dupont model
: Calculate the DuPont Model, given the following information: cash=$16,080; accounts receivable= $9,500; prepaid = $3,150; supplies =$675; equipment =$25,200; accumulated depreciation - equipment = $8,150 for year one. Assume sales revenue and net sal..
|
|
Costs associated with this level of production and sales
: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 42,000 Rets per year. Assume that due to a recession, Polaski Company expects to sell only 35,000 Rets through regular chann..
|
|
Direct materials price and quantity variances
: Topper Toys has developed a new toy called the Brainbuster. The company has a standard cost system to help control costs and has established the following standards for the Brainbuster toy: Compute the following variances for August. Direct materials..
|
|
Regarding ethical issues accompanying budgeting
: Which of the following statements is true regarding ethical issues accompanying budgeting?
|
|
Debt service fund for the years
: The City of Spartan's fiscal year ends on December 31. On October 1, 2017, the city issued $1,000,000 of 6%, 10-year term bonds with semi-annual interest payments due on March 1 and October 1 each year, beginning on April 1, 2018. What amount of expe..
|
|
Lock division refuses outside price and cabinet division
: Lock Division of Morgantown Corp. sells 80,000 units of part Z-25 to the outside market. Part Z-25 sells for $40, has a variable cost of $22, and a fixed cost per unit of $10. The Lock Division has a capacity to produce 100,000 units per period. What..
|